The levying of a 16% tax on all stock exchange earnings, without providing any incentive for long-term investments, turns the Romanian market into one of the most expensive in Europe. Belgium, Turkey, and Croatia do not levy any tax on earnings made from selling shares, while Germany and Portugal do not levy taxes on shares held for over a year.

The new taxation system targeting individuals' earnings on the capital market makes the Romanian market one of the most expensive in the region, with the Government continuing to discourage Stock Exchange investments in a bid to collect a few more million RON to the budget. The levying of a 16% tax on shares held in one's portfolio for over a year, as opposed to the current 1%, could discourage long-term Stock Exchange investors, and would implicitly have a negative impact on the future public offerings to be conducted on the Stock Exchange. This comes in the context where the Government is planning to sell several stakes in energy companies in view of raising funds for investments, so it should seek to attract more investors to the market instead of driving away the few that are there.

The levying of a 16% tax on all stock exchange earnings, without providing any incentive for long-term investments, turns the Romanian market into one of the most expensive in Europe. Belgium, Turkey, and Croatia do not levy any tax on earnings made from selling shares, while Germany and Portugal do not levy taxes on shares held for over a year.

The new taxation system targeting individuals' earnings on the capital market makes the Romanian market one of the most expensive in the region, with the Government continuing to discourage Stock Exchange investments in a bid to collect a few more million RON to the budget. The levying of a 16% tax on shares held in one's portfolio for over a year, as opposed to the current 1%, coul